Finnish engineering group Valmet announces that Kronospan Energy has initiated arbitration proceedings against its subsidiary Valmet Technologies. The dispute concerns a biomass-fired combined heat and power plant in Luxembourg that was handed over in July 2024.
Kronospan is preliminarily seeking approximately EUR 130 million, of which EUR 102 million relates to alleged impairment of the plant and EUR 23 million to lost profit. The claims are primarily based on alleged performance problems and deficiencies in the plant.
Valmet disputes the allegations and considers that the plant has met the agreed performance requirements. The company also intends to pursue its own claims against Kronospan.
According to Valmet’s current assessment, the dispute is not expected to have any material adverse impact on the group’s operations or financial position.
